Upwards of $400 million were liquidated in the past 24 hours as Bitcoin price surged above $47,000

Bitcoin price has spiked above $47,000 – a price we haven’t seen since Jan. 2. Volatility has also affected the market, with liquidations reaching over $410 million in 24 hours—past hour. Accordingly, Ethereum has seen over $100 million in liquidation.

Bitcoin price is on a steady growth track

At press time, Bitcoin price is trading at around $47,000 but has peaked at $47,650 earlier today (on Binance). With this increase, the cryptocurrency charts a gain of approximately 13.5% over the past seven days.

upwards-of-400-million-were-liquidated-in-the-past-24-hours-as-bitcoin-price-surged-above-47000

BTC/USD 4-hour chart | Source: TradingView

The liquidity of both Ethereum and Bitcoin has increased significantly in the past 24 hours. Over 100 million USD in ETH has been liquidated. The increase in market volatility and turmoil has resulted in over $410 million worth of Bitcoin worth of positions being liquidated in the past 24 hours. Data from Coinglass reveals that the most significant retail liquidation took place on Bitmex with a whopping $10 million in face value. As expected, almost 80% of liquidation positions are short.

Santiment has also reported on this issue. The average altcoin funding rate quickly rose from the short zone and entered the long zone. As for the Bitcoin funding rate, it remains relatively neutral until BTC reaches the resistance area. Right before the spike to $47,000, the number of short positions was steadily increasing.

The market distrust explains the increase in the number of shorts in BTC, which has tested the resistance level at least three times unsuccessfully. But despite the negative market sentiment, as soon as BTC broke it, the number of long positions spiked immediately due to investor FOMO sentiment.

Bitcoin and the rest of the market have been bullish over the past week. Other market indicators have also pointed to a potential bull run, such as an increase in smallholdings and the movement of assets away from exchanges.

Then there is the fact that there have been some positive developments in the space, especially for Ethereum. The Merge update, which brings the Beacon chain to the specific testnet and eventually to the mainnet, took place successfully on the Kiln testnet earlier this month. This has caught the public’s attention, as searches for the keyword “Ethereum Merge” on Google Trends have hit a new high.

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